Van hire costs are affected by factors like the size of the van, length of your contract, mileage allowance, fuel efficiency, and more. To save money, choose the best van for your needs, keep an eye on mileage and fuel use. If you need your van for several years, a long-term hire contract also comes with lower monthly costs.
Hiring a van for the long term is one of the most cost-effective ways to get reliable transport for your business or personal needs. Instead of worrying about buying outright, depreciation, or managing unexpected repair bills, long-term van hire (12–36 months) gives you a predictable monthly cost and the flexibility to choose from a wide range of vehicles.
But what actually affects van hire costs, and how can you make sure you’re getting the best deal? This guide explains the main factors, shows you how to save money, and gives real-world examples based on vans available in our fleet.
Jump to:
- How much does it cost to hire a van?
- What affects van hire costs?
- How to save money on van hire costs
- Which van suits your needs?
- Example case study: Saving with the right long-term hire
How much does it cost to hire a van?
Van hire costs depend on three main factors:
- Van model
- Cost of your initial deposit
- Length of your contract
- Mileage allowance
Unlike short-term rentals, long-term van hire spreads costs across 12, 24, or 36 months, making budgeting much simpler and predictable. Here are the different van hire costs for some of the most popular models in the UK, based on their size and hire length:
| Van size | Example van models | Typical monthly hire costs (12–36 months) | Best for |
|---|---|---|---|
| Small vans | Citroën Berlingo Enterprise | £329–£349 | Urban deliveries |
| Medium vans | Ford Transit Custom 300 EcoBlue | £399–£479 | Tradespeople, courier routes |
| Large vans | VW Crafter CR35 LWB | £579–£599 | Construction, house moves |
| Specialist & 4x4s | Toyota Hilux Invincible X | £550–£700 | Rural routes, off-road |
Top tip: The longer the contract, the lower the monthly rate. A 36-month agreement often works out to be £50–£100 cheaper per month compared to a 12-month hire. Over three years, that’s a saving of £1,800–£3,600 compared to if you kept renewing on a shorter contract.
What affects van hire costs?
Several major factors affect the cost of long-term van hire. Here’s a breakdown:
How do vehicle type and size affect cost?
Your choice of van has the biggest impact on cost. Larger vehicles naturally cost more to hire, but may be essential depending on your needs.
- Small vans (e.g., Citroën Berlingo Enterprise): Cheaper to hire, fuel efficient, and easy to park. Best for local deliveries or trades working in cities.
- Medium vans (e.g., VW Transporter Highline SWB): Balance of capacity and running costs. Popular with trades and couriers.
- Large vans (e.g., Ford Transit 350 Trend EcoBlue): Higher monthly hire, but ideal for bulky items, construction kits, or large deliveries.
- Specialist/4x4s (e.g., Toyota Hilux Invincible X): Cost more but are needed for rural, agricultural, or mixed passenger/cargo use.
Keep in mind: Hiring a large van might cost more per month than a smaller van. But if it saves you from making two trips per job, the larger van could actually save you more in fuel costs.
How does contract length affect van hire costs?
How long you hire the van for also affects your monthly cost.
- 12 months: Higher monthly cost, but ideal if you only need a van for the short term.
- 24 months: A good balance between flexibility and affordability.
- 36 months: The cheapest per month; perfect for stable, long-term needs.
Example: A Ford Transit Custom might cost £499/month on a 12-month deal, £489 on 24 months, and £479 on 36 months. Over the contract, the 36-month Ford Transit Custom hire is £720 cheaper compared to renewing annually.
How does mileage allowance affect van hire cost?
When it comes to long-term van hire costs, fuel is one of the biggest. That’s why it’s important to work out the cost of the mileage you’ll actually drive on top of your monthly hire costs. Here’s the mileage breakdown you can expect from First Step:
| Mileage driven annually | Estimated cost per mile |
|---|---|
| Up to 10,000 miles | 25p per mile |
| 10,001–15,000 miles | 30p per mile |
| 15,001–20,000 miles | 50p per mile |
| 20,001+ miles | £1.00 per mile |
Example:
- If you were to travel 12,000 miles per year in a medium van like the Ford Transit Custom, you could expect fuel costs of around £3,600 annually (12,000 × 30p).
- For 20,000 miles per year in a Citroën Berlingo Enterprise, you might see fuel costs closer to £10,000 annually (20,000 × 50p).
By calculating your fuel usage in advance, you can budget more accurately and choose the van and contract length that best fit your driving needs.
How does fuel efficiency affect van hire costs?
Vans with efficient engines can save hundreds over the life of a contract.
- Ford EcoBlue diesel engines and Citroën BlueHDi engines deliver higher miles per gallon.
- A van doing 40 MPG instead of 30 MPG saves around £600 over 36 months (based on 15,000 miles/year at £1.50/litre).
Always compare MPG when choosing between models. A cheaper monthly hire on a less efficient van may cost you more in fuel long-term.
How does insurance affect van hire costs?
You’ll need your own comprehensive insurance policy for the duration of your hire. Premiums vary depending on:
- Driver age and experience
- Whether the van is for business or personal use
- Your claims history
- The size and type of van
Shopping around can save £100s per year. Some businesses save even more by insuring multiple vans under one policy.
How do deposits and upfront payments affect van hire costs?
Some contracts include an initial rental or deposit. The amount depends on the van type and contract length:
- Shorter contracts (12 months) often require a larger upfront payment.
- Longer contracts (36 months) usually spread the cost, lowering the deposit.
At First Step, a 3-month deposit is required on contract hire. Larger 6-month deposits in advance are available to reduce your monthly payment.
Get on the road for less! Explore our latest 12–36 month van hire deals with free UK delivery and no hidden fees.
How to save money on van hire costs
Here are some easy ways to cut van hire costs while keeping it fit for purpose:
- Choose the right van for the job: Don’t overpay for unnecessary space. A Citroën Berlingo is perfect for deliveries around town. No need to commit to a VW Crafter unless you regularly carry large loads.
- Select the best contract length: If you’ll need it for several years, a 36-month van hire deal is the best value compared to a 12-month van hire.
- Match your mileage carefully: Estimate realistically. Paying for unused miles is wasted money, but excess mileage fees add up quickly.
- Pick a fuel-efficient model: Ford EcoBlue and Citroën BlueHDi engines are more efficient and bring long-term fuel savings.
- Compare against leasing or buying: Vans depreciate by £5,000+ in the first year alone. With contract van hire, that loss isn’t yours to absorb.
Did you know? A newly purchased van can depreciate in value by up to 60% in its first four years.
Which van suits your needs?
Different vans suit different business needs – here are some of the best options based on specific use cases:
Best van hire for tradespeople
The Ford Transit Custom 300 EcoBlue is the ideal choice for builders, plumbers, and electricians who need reliable space for tools and equipment. Its generous load capacity and wide rear doors make site access simple, while the EcoBlue engine keeps running costs manageable on daily jobs. With enough room for ladders, toolboxes, and materials, it’s a van built to handle busy trade schedules without pushing up fuel spend.
Best van hire for couriers and delivery drivers
The Citroën Berlingo Enterprise is compact, agile, and designed for multi-drop routes. Its tight turning circle makes city deliveries stress-free, while the fuel-efficient BlueHDi engine helps keep costs low when covering long mileage. The sliding side door and low loading height also speed up parcel handling.
Best van hire for construction businesses
With one of the largest payloads in its class, the VW Crafter CR35 LWB is perfect for hauling heavy tools, timber, and site equipment. Its tall loading height and wide rear doors make it easy to move bulky items such as plasterboard or scaffolding. Built tough, it’s ideal for regular site use where reliability matters.
Best van hire for rural or off-road work
Renowned for durability, the Toyota Hilux Invincible X is built for tough terrain, from farms and quarries to construction sites. Its four-wheel drive capability stays gripped to mud, gravel, and uneven ground, while the spacious load bed is perfect for tools, feed, or a heavy-duty kit. It’s a workhorse trusted worldwide for demanding conditions.
Example case study: Saving with the right long-term hire
A small electrical contractor needed a reliable van for daily site visits. Their old van was breaking down regularly, costing £2,000+ per year in repairs. Short-term options were too expensive for ongoing use, so they chose a Ford Transit Custom LWB on a 24-month hire.
With fixed monthly payments and repair costs – plus the option to upgrade at the end of the contract – they saved around £4,000 over two years compared to buying outright. This kept cash flow free for training staff and buying new tools when needed.
Take the First Step towards smarter van hire
Why pay more to lease or buy when you can get a van that works harder for your money? With 30 years’ experience, flexible 12–36 month deals, and road tax included, First Step keeps van hire simple and affordable. Add in free UK delivery, no admin fees, and a nationwide reputation for excellence, and you’ve got a van hire partner you can trust.
View our latest van hire deals today or speak with our team to get your free quote.